This Easter season has cast a spotlight on how South African consumers are adapting to the changing retail landscape, redefining the way they shop amidst economic pressures. Discover how digital payments and alternative credit are shaping the future of retail spend in the country.
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This year’s Easter trading period revealed an evolution in consumer spending habits across South Africa, as digital shopping environments and alternative credit systems gained traction.
Retailers have reported that, although consumers are still making purchases, they are doing so in increasingly innovative ways, reflecting a fundamental shift in the retail landscape.
Recent industry findings indicated that transaction values and volumes have experienced steady growth during the Easter period.
PayJustNow, a leading provider of in-store and online buy now, pay later (BNPL) and retail credit options reported impressive growth figures.
From April 1 to 13, the platform recorded a year-on-year Gross Merchandise Value (GMV) increase of 71.5%, with order volumes climbing by 72.9%.
Looking at the entire month, GMV is on track for an astonishing 83.3% growth, alongside an 82.9% rise in order numbers. Yet, the average basket size saw a slight decline of 0.8% during the same timeframe, hinting at a shift in consumer behaviour.
Dean Hyde, Chief Operating Officer at PayJustNow, said, “Consumers are still under pressure, but they have not stopped spending. What has changed is how they are doing it. We are seeing more frequent and deliberate purchases, often across a broader mix of categories and price points.”
This observation reinforces the idea that growth is being fueled by continuous engagement within digital retail platforms rather than through larger, one-off purchases.
The data also showed that merchants with emporium-style offerings, which include a diverse selection of both value-driven and everyday items, are playing a pivotal role in driving sales.
These retailers, alongside those traditionally known for high-value products, are effectively capitalising on the changing consumer landscape.
Hyde further said that digital shopping venues are evolving beyond mere transaction channels into immersive environments that foster repeat engagement.
“Consumers browse, compare, and return before making a purchase. When you combine that with structured payment options, you reduce friction at the decision-making stage,” said Hyde.
PayJustNow processes over 11,000 transactions a day and boasts an impressive 88% repeat customer rate, signifying that consumers are not only returning but embracing structured payment methods in their shopping habits.
This trend challenges the notion that increased credit usage leads to irresponsible spending.
PayJustNow maintains a default rate of less than 2%, guided by a data-driven “low and grow” model, which responsibly enhances consumers' spending limits in line with their repayment behaviours.
Hyde added, “For retailers, the implication is that access to digitally engaged consumers, coupled with structured payment options, is leading to greater participation, more frequent transactions, and enhanced customer retention over time.”
As digital payments and alternative credit solutions continue to evolve, the growth of the retail sector is becoming reliant on accessibility, frequency, and control, rather than traditional spending paradigms.
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